Appendix 4 - Tern Valley capital appraisal.pdf - Shropshire Council

Appendix 4 – Tern Valley Appraisal
1. Name of Project Phase 2 Tern Valley Business Park, Market Drayton
2. Service Development Services – Economic Development
3. Responsible Officer:
Contact phone no
Email Address
Chris Hill
01743 252273
chris.hill@shropshire-cc.gov.uk
4. Objectives to be met Supporting economic prosperity through the
provision of employment land, stimulating
employment generation.
The investment will create employment land which
will be sold generating capital receipts. There is a
demand for new sites for inward investment and
local company expansion .Expansion and relocation
by local companies will in turn release smaller sites
for other businesses
5. Alternatives Explored
The private sector is not currently providing
commercial land in North Shropshire as development
costs exceed likely capital receipts.
Local company expansion, economic development
and new job creation would be stifled if left to the
market. Public sector support is required to facilitate
the development of the site.
6. Proposal
The provision of serviced employment land in Market
Drayton (5.5ha) North Shropshire as part of a rolling
programme to serve local company expansion and to
stimulate new inward investment.
The estimated development cost of bringing forward
this scheme is £4.37m. Capital receipts of
approximately of £2.65 million in total are expected to
be generated from the sale of serviced plots at the
site.
The former North Shropshire District Council
provided £510,000 in 07/08 and £224,000 in 08/09
towards the total overall cost of the scheme.
Advantage West Midlands entered into a joint
venture with Evans Easyspace to develop a network
of Rural Enterprise Centres around the County and .
Market Drayton has been identified as one location.
The centres provide workshop and office space for
small and start up businesses on an ‘easy in’ and
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Appendix 4 – Tern Valley Appraisal
‘easy out’ basis. There have been initial discussions
with AWM on a site at Tern Valley however AWM’s
current funding difficulties and impact of the
recession on Evans Easy Space lettings and
development programme may mean that a site is not
forthcoming in the short term. Assuming a 1.5 ace for
the Enterprise Centre site it is estimated that it could
generate sale value of around £300,000.
Outcomes will be measured on the basis of amount
of land brought in to use for employment use and job
creation (approximately 100-120 jobs).
7. Brief Description Acquisition of sites and provision of infrastructure to
provide a variety of plots for development by Owner
Occupiers or Developers for business units for
warehousing, office or workshop use.
8. Outputs/benefits/future commitments
- direct or by setting a precedent
Provision of 5.5ha (13.5 acres) of serviced
employment land
9. Overall assessment of political and
public priority (consequences of Project
not proceeding)
If funding is not provided, it is unlikely there will be an
alternative scheme put forward by the private sector.
This will frustrate expansion of any existing
businesses within the locale and threaten continued
viability of business in the north of the county. There
will also be negative impact on economic
development in the district and job creation.
9. Scoring
High political and public priority 5
Low political and public priority 0
Score 5
10. Links with Plans:-
Community / Corporate / Statutory /
Service / Asset Management
- Service PIs / Targets
- other plans/strategies
The investment will provide expansion opportunities
for local businesses and employment generation for
the local community.
The private sector to date has not been able to
provide the opportunity to meet the demand
10. Scoring
Fully complies with service plan objectives 10
Partially complies with service plan objectives 5
Does not comply with service plan objectives 0
Score 5
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11. Required to meet essential statutory
needs?
Implications for staffing/HR?
Potential risks associated with this
scheme eg DDA, environmental?
Other relevant information
None
Appendix 4 – Tern Valley Appraisal
11. Scoring Score
Required to meet statutory needs 10
Not required to meet statutory needs 0
Score
12. Essential replacement, desirable
replacement or new asset?
New asset to then be sold on.
12. Scoring Score
Essential replacement 5
Desirable replacement 3
New asset 1
Score 1
13. Costs 2009/10 2010/11 2011/12 Future Total
£000 £000 £000 £000 £000
Land 2,308 2,308
Works/construction (inc fees) 1,887 173 2,060
Fees
Vehicles
Furniture & Equipment
Other (please specify)
Total 4,195 173 4,368
14. Funding Approved 2009/10 2010/11 2011/12 Future Total
/Targeted £000 £000 £000 £000 £000
Shropshire Council A (2,961,000) 3,461 173 3,634
Lottery/NOF
Govt grant
EU funds
AWM
Countryside Agency
Trusts
Local Authorities
NSDC 734 734
Other (please
specify)
Total 4,195 173 4,368
Partnership/External Funding
Funding %
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Score

Appendix 4 – Tern Valley Appraisal
0 0
0 – 10% 2
10% - 20% 4
20% -30% 6
30% – 40% 8
> 40% 10
Score 0
15. Revenue Implications 2009/10 2010/11 2011/12 Future
(excluding loan charges) £000 £000 £000 £000
Employee costs
Running Costs
Furniture & Equipment
Other (please specify)
Sub Total
Savings
Total
Revenue Savings/Costs
Cost
Score
Annual Revenue Savings in excess of £200,000 10
Annual Revenue Savings between £150,000-£200,000 8
Annual Revenue Savings between £100,000-£150,000 6
Annual Revenue Savings between £50,000-£100,000 4
Annual Revenue Savings between £0-£50,000 2
Additional Annual Revenue Costs between £0-£50,000 -2
Additional Annual Revenue Costs between £50,000-£100,000 - 4
Additional Annual Revenue Costs between £100,000-£150,000 - 6
Additional Annual Revenue Costs between £150,000-£200,000 - 8
Additional Annual Revenue Costs in excess of £200,000 -10
Score -2
16. Project Deliverability - 2008/9 2009/10 2010/11 Future
Key Dates / Timetable
Consultation with stakeholders?
Site Identification and Acquisition Yes
Project Brief Completed
Yes
Planning Permission/other approvals Yes
Tenders Invited July 09
Contract Let Sept /Oct 09
Commencement of Work Oct /Nov 09
Completion of Work Jun 10
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Appendix 4 – Tern Valley Appraisal
16. Scoring
Well considered, little risk 5
Work still to be done 3
High risk 0
17 Contribution to Council’s Visions Aims and Priorities Points
Score for each priority Fully contributes 10
Partially contributes 5
Does not contribute 0
To give Children and Young People the best opportunities today and for the future
1 Reduce homelessness amongst young people
2 Support vulnerable children and young people to improve their life-chances
3 Improve the educational achievements of our pupils, particularly focussing on
underachieving groups
4 Improve access for 14-19 year olds to a range of activities and support that helps them 5
prepare for further education, employment or training.
Sub-total points 5
To improve the Health and Wellbeing of Shropshire’s residents
5 Improve the housing delivery for which Shropshire Council has direct responsibility
6 Support older and vulnerable people to live independently
7 More Choice and control for vulnerable people
8 Maximise vulnerable and older people’s income and increase take up of benefits
9 Residents enjoy a range of activities, lead active lives and enjoy their free time
Sub-total points
To ensure Safe and Strong Communities for everyone in the County
10 Minimise anti social behaviour in Shropshire
11 Minimise re-offending and violent crime, including domestic violence
12 Minimise the harm caused by drug and alcohol abuse
13 Communities have more of a say in service delivery and difference are recognised and
respected
Sub-total points
To build sustainable Communities for local people to live and work in Shropshire
14 Provide a range of affordable housing options for Shropshire residents
15 Reduce waste to landfill
16 Reduce the levels of worklessness and support increased economic prosperity 10
17 Shropshire’s roads are safer and communities have better access to services and jobs
through public transport
18 Shropshire’s environment is valued and improved
19 Reduce Shropshire’s impact on climate change
Sub-total points 10
Total
Additional points allocated*
Total points 15
*If a score of 30 or more is scored on any of the five key themes, add 10 to reflect an extremely strong fit to that corporate theme
Converting compliance points into a score
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Appendix 4 – Tern Valley Appraisal
Vision, Aims and Priorities
Points
Score
161 – 250 10
131 – 160 8
101 – 130 6
71 – 100 4
31 – 70 2
0 – 30 0
Score 0
Combined Scoring
Qn
Score
9. Overall assessment of political and public priority 5
10. Links with plans 5
11. Meeting a Statutory requirement 0
12. Essential replacement, desirable replacement or new asset? 1
14. Partnership funding 0
15. Revenue savings/costs -2
16. Project deliverability 3
17. Compliance with Corporate Aims and Priorities 15
Total Score 25
Human Rights Act Appraisal
Environmental Appraisal
Risk Management Appraisal
An appraisal has been conducted and at this stage the
recommendations are unlikely to result in any implications for the
Human Rights Act
Ecological surveys have been carried out and there are no major
risks to the environment at Tern Valley. Further, there will be
enhancements to the adjoining open space at Tern Valley to meet a
planning condition.
The scheme will include energy saving measures and consider the
use of renewable energy to serve the site.
Outline planning permission for the scheme was approved by NSDC
on 5 March 2008 for Tern Valley.
Risks of the viability of the scheme at Tern Valley have been
minimised by:
1)Provision of alternative funding
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Appendix 4 – Tern Valley Appraisal
The withdrawal of AWM funding has required Shropshire Council
to provide replacement funds to secure implementation
2)Close monitoring of costs.
Tenders are shortly to be received and these can be reviewed
against the cost estimates .Given the current market conditions it
is likely that tenders will be more competitive
3) Alternative use of AWM site
Uncertainty over AWM funding and market conditions may mean
the Evans Easyspace site does not come forward. In the light of
this the viability of an alternative small workshops/office scheme
will be explored
Community/Consultations Appraisal
There has been full consultation as part of the planning process for
the Tern Valley application including the Town Council.
Cabinet Member
Cllr Dvid Roberts
Local members
Appendices
Checked by Head of Services
Date
Checked by finance
Date
Authorised by Assistant Director (All
schemes including LTP projects)
Date
Authorised by DMT (Schemes over
£140,000 or with SCC funding greater
than £40,000 or deemed necessary by
Assistant Director)
Date
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